White House pressures South Korea to remove non-tariff trade barriers as a key trade surplus nation.
South Korea’s trade surplus with the U.S. has risen for five consecutive years, reaching $55.7 billion in 2023.
U.S. to announce reciprocal tariff policy on April 2 in response to trade barriers.
High tariffs and agricultural quarantine rules cited as key non-tariff barriers affecting U.S. exports.
Opinion
The U.S. is increasing pressure on South Korea over its trade surplus, particularly in light of the upcoming reciprocal tariff policy. The negotiation tensions are expected to escalate as the policy implementation date nears, potentially leading to increased trade restrictions.
Core Sell Point
The U.S. reciprocal tariff policy could increase regulatory risks for South Korean exporters, intensifying trade tensions between the two nations.
The White House has identified South Korea as a key trade surplus nation and is pushing for the removal of non-tariff barriers. Kevin Hassett, Chairman of the U.S. National Economic Council (NEC), stated in a CNBC interview that the U.S. trade deficit with Europe, China, and South Korea remains a concern. He pointed out that high tariffs and non-tariff barriers make it difficult for U.S. companies to compete. The U.S. is set to announce its "reciprocal tariff" policy on April 2, adjusting tariffs in response to perceived trade barriers.
Hassett emphasized that if trade surplus nations like South Korea lower their trade barriers, negotiations could conclude swiftly. However, he hinted at additional tariffs on countries that maintain such barriers. The U.S. government has cited high tariffs and strict quarantine regulations on agricultural products as examples of non-tariff barriers, suggesting South Korea could be included in the reciprocal tariff policy.
South Korea already has a free trade agreement (FTA) with the U.S., eliminating tariffs on most American products. However, South Korea’s trade surplus with the U.S. has increased for five consecutive years, reaching $55.7 billion in 2023. Hassett noted that while there may be uncertainty until April 2, the market will soon acknowledge the validity of a reciprocal trade policy.
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